I received RSUs overseas, then moved to the US when they vested. I want to avoid double taxes, but I don't have my international tax docs yet. What should I do?

[pchansea1]

I previously worked for an international company (started in 2016). When I joined, I received RSUs. I moved to the US in 2018, and my last batch of RSUs (granted in 2016) vested in 2020. My understanding is that I will have paid both Japanese and US taxes for this stock vest. I would like to claim the Japanese tax credit so I don't get double-taxed, but I don't know how much that will be yet, since I haven't received my Japanese tax documents yet. How should I proceed?

[DavidD66 · Accepted solution]

The vesting of the RSUs is a taxable event for US tax purposes.  The value of the RSUs on the date they vest is considered ordinary income, and is subject to Social Security and Medicare taxes, as well as federal and state income tax.  If you paid Japanese tax on the RSUs as well, then you can claim a credit for foreign tax paid.  If you don't yet know how much your Japanese tax was/is, you will have to wait to file your US tax return.  If you don't know by April 15, you can file an extension.